Business's Bad Luck with Binance Deposits Turns Out Worse Than Expected
Despite it being willing to seek help from its clients, the business chose to deposit its and their property at Binance while trading LUNA. That did not turn out the way they hoped.
Uprise Investment Fund was hit by the LUNA crash, losing over $20 million in funds while short-trading it during its drop in May.
- A local news report on Tuesday (July 6, 2022) revealed that after Uprise entered a short sell position for LUNA with clients' funds, the firm suffered huge losses.
- The company lost about 26.7 billion won (about $20.4 million), or 99% of customers' funds, as a result of the violent market volatility. In addition, Uprise lost 3.9 billion won (or $2.9 million) in its own assets in this incident
- Uprise is looking for ways to compensate customers, according to a spokesperson for the company.
“It is true that damage to customer assets has occurred due to unexpected great volatility in the market. We plan to finalize the report on virtual asset business soon.”
- Uprise, a Korean firm, operates a cryptocurrency trading desk that invests clients' funds in the cryptocurrency futures market. Uprise also has an ETF investment platform called Iruda.
- Uprise, which is supported by South Korean venture capital companies like Kakao Ventures and KB Investment, uses “AI-powered robo advisor technology” in its crypto trading.
- The crash of Terra’s native coin LUNA, which occurred in May, has caused a contagion affecting several cryptocurrency companies that were exposed to the fallen token.
- Crypto hedge fund Three Arrows Capital (3AC), which invested $200 million in LUNA, was hurt by the token's price drop.